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Infogroup sues founder Gupta, alleging theft of sales contacts

Published on September 20, 2011.

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Omaha, Neb.—Database marketing company Infogroup Inc. has sued its founder and former chairman-CEO, Vinod Gupta, alleging that Gupta has stolen confidential information to help launch a competitor sales-contact company, Database101.com.
In its suit, Infogroup said Gupta's hiring of some 20 former Infogroup employees was a way to unlawfully access Infogroup's database contact lists, and that Database101 personnel attempted to access an Infogroup database without authorization.
“It is our intention to vigorously defend [our] good will and market leadership from what we consider to be unfair trade practices,” Infogroup said in a statement. Gupta founded Infogroup more than 30 years ago but was forced out in 2008 amid an SEC investigation and lawsuits by shareholders over excessive spending. He launched Database101 earlier this year.
Gupta was not available for comment at deadline. However, according to the Omaha World Herald, he denied any improprieties and said he would fight the lawsuit. “It's unfortunate that Infogroup has decided to bring a frivolous lawsuit rather than compete in the market,” Gupta told the newspaper.